In 1990, three men were charged in relation to the crime but none was convicted.

In 2008, Strike Force Kulaman was set up to re-investigate the case.

Two years later, police posted a $200,000 reward for information about the murder, and the second coronial inquest was held in 2011.

Police said it was the oldest unsolved homicide case in New South Wales to lead to an arrest to date.

Detective Superintendent Willing said the officers working on the case had been tenacious.

"By their very nature, these old, unsolved cases are extremely challenging investigations, but we have a team of Unsolved Homicide detectives who are brilliant at what they do, and are committed to getting results no matter how long ago the crime occurred," he said.